What are the differences between Traditional and Roth IRAs?
The difference between a Traditional and Roth IRA can be summarized by the following comparison.
| Contributions | |
| Traditional IRA: | Regular contributions may be tax-deductible |
| Roth IRA: | No deductions |
| Earnings Growth | |
| Traditional IRA: | Tax-deferred |
| Roth IRA: | Tax-free if used properly |
| Distribution Taxation | |
| Traditional IRA: | Includable in taxable income |
| Roth IRA: | Tax-free for qualified distributions |